BUSINESS MEMO: TO CLOSE 3 STORES

Citing rising labor costs, Schnucks Markets, Inc. officials have announced that they would close three stores in the St. Louis area.

The area's largest supermarket chain said its employees' union demands had increased costs in operating the stores.

The closings at locations on Cass Avenue, North Kingshighway and Gravois Road, are expected to bring no layoffs, officials said. The 73 full-time and 184 part-time workers will be transferred to other stores.

Schnucks said "major cost increases" contained in its 2-month-old union contract forced the decision. Union workers at Schnucks approved a three-year contract June 29. They won an $1.75 an hour wage increase over the term of the contract.

In addition to the pay raise, the deal calls for pension plan improvements and continued 100 percent funding of the health plan by the company. Currently, union members' salaries vary from $7 per hour to $15.65, depending on their job and years of experience.